Asian distillate cracks rally on week as crude slides on gasoline demand

London, (Quantum Commodity Intelligence) - Key Asian distillate cracks rose in the week ending April 9, largely driven by a far greater than expected draw in US gasoline stocks that dragged crude lower.

The 10ppm diesel cash crack versus June Brent ended the week at $3.91/b FOB Singapore, up 17% since Monday, while jet cracks rose a chunky 60% to $1.77/b from $1.11/b.

The move came as Brent futures slid after the EIA released data showing that gasoline stocks rose by 4 million barrels to 230 million barrels versus analyst estimations of a much lower build. 

That sent Asian gasoline cracks tumbling, with the RON 92 FOB Singapore spot crack versus cash Brent falling below $7/b for the first time in a week to $6.31/b.

Naphtha followed suit, closing just above $100/mt FOB Singapore, down $3/mt since Monday.

The build in light ends wasn't expected by the market, which anticipated that higher vaccination rates across the US would see a much greater demand for gasoline.